All Forum Posts by: Ethan Gidcumb

Hey Drew!

If you are a first-time home buyer, I would recommend buying a multi-unit complex with an FHA loan and house-hacking the other units. This way you have assistance with the mortgage, and an opportunity for appreciation and cash-flow in the future if you move.

I hope this helps!

Hey Mary! A 10% return should be the minimum that you are looking for to make a flip worth it. Depending on your market, property, amount of rehab required, and ARV, I also like to pay attention to your return in a whole number approach to make sure you see the return as worthy of your time. This is because 10% can look very different depending on your location.

I hope this helps!

Hey Gabriella! Congratulations on this next chapter. When it comes to flipping homes, one issue I see with a lot of deals is the value in the market. I like to check this using the recent sales (usually in the last 3-6 months), shown on a MLS site.

I hope this helps! 

Hey John! I would recommend starting with your own investment strategies such as fix-flips, str, etc because you will have more control over the deal to ensure its success and I believe you could make even better returns this way. I don't know how much capital you are working with and what your target returns are, but, there are probably more resources on how to successfully invest in your own projects than how to become a private money lender anyway. I would answer this differently if you had mentioned that your goal was to manage a fund one day. But anyway, I hope this helps and good luck in whatever you choose to do!

Hey Kal, from my experience on the Hard Money Side. Loans are closed in an entity but a personal guarantor is recorded. However, the loan is still not reported on your personal credit and you are individually protected through the LLC.

I hope this helps!

Hey Yi!

It depends on the amount of rehab that you are going to do and in what market. If you were going all the way down to the studs and doing a flip in Virginia, I might suggest accounting for $50/sqft depending on the market. But, you will have to consider your situation. A General contractor's opinion is going to be best of course and you will have time to confirm any values during your due diligence phase. 

I hope this helps!

Hey Kristopher! What is important to you? For myself, I would be interested in investing in a syndication or fund that invests in an asset that I believe in and am comfortable with putting money towards. Beyond that, I would consider the track record and reviews of the group. If their reputation seems solid, and I am confident in the asset class, I would personally consider the target returns. Hopefully, this raised a few questions that you can reflect on and it will help you find what is right for you. Good luck! 

Looking forward to this!

Hey Nick, Do you have any experience doing flips? 
For first-timers on a fix and flip: we lend, 70%-75% LTV to Purchase Price + 100% LTV to Rehab, rates for first-timers are usually 12-13% (Non-dutch), no PPP, points are 2.5%-3%, closing times are 5-10 days.

When you have a project in mind, you should send some information to your lender such as Purchase Price, Rehab amount, ARV, and Exit strategy

From there they should be able to take a look at the deal and review it with you.

They may require an appraisal of the property. 

Once the project starts, we require an inspector to go on-site to confirm materials are on-site and installed before each draw of rehab funds are sent to you.

Once you finish the project, you follow through on your exit strategy and then continue on the next flip!

Hopefully, this provides some insight into the process!

Hey Ben, I hope you were able to find a lender for your investment! But, in the case you didnt I would like to give you perspective on what we lend on for first-timers. For a fix and flip: we lend, 70%-75% LTV to Purchase Price + 100% LTV to Rehab, rates for first timers are usually 12-13% (Non-dutch), points are 2.5%-3%, closing times are 5-10 days.

Hopefully this helps, good luck on your next flip!